Tag Archives: automobiles

In its recommendations on corporate loan restructuring submitted by the KV Kamath-led committee to Reserve Bank of India, tourism does not feature as a problem sector among the top five, which include aviation, real estate, automobiles, infrastructure and power. The committee has suggested solutions for 29 of the 307 sectors it assessed.

According to an RBI survey, the aviation, automobiles, construction, MSME, and tourism & hospitality sectors would be the hardest-hit by COVID-19 pandemic. The bank carried out a systemic risk survey ‘to capture the perceptions of experts, including market participants, on the major risks faced by the financial system’.  Within the tourism sector, around 90 per cent of the respondents stated that the ‘prospects of recovery within the sector in the next 6 months appear bleak’. The aviation sector appears to be a close second, with nearly 85 per cent of the respondents categorising the prospects as grim. The results of the survey were published in its financial stability report released recently. It mentioned that the above-mentioned five sectors are adversely impacted by the coronavirus pandemic. Respondents said that “while most sectors face sizeable and immediate revenue losses, the adverse impact is seen in sectors where consumption spending is discretionary in nature”.